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Galena Mining executes hybrid power purchase agreement for Abra Base Metals Project

The company has signed a power purchase agreement with Contract Power Australia for a hybrid power station.

Galena Mining Ltd - Galena Mining executes power purchase agreement for Abra Base Metals Project
The agreement is subject to AMPL proceeding to final investment decision for the project.

Galena Mining Ltd (ASX:G1A) (FRA:GM6) welcomes the execution by Abra Mining Pty Limited (AMPL), the joint-venture company for the Abra Base Metals Project, of a Power Purchase Agreement (PPA) with Contract Power Australia Pty Ltd.

Under the terms of the PPA, Contract Power will build, own and operate an integrated hybrid power generation facility combining a 10MW natural gas fired power station, a 6MW solar array, 2MW of battery energy storage and a 900,000 litre LNG storage and regasification facility.

Abra will purchase power under the PPA for an initial term of 16-years, and this is extendable.

“Reduces the carbon footprint”

Galena managing director Alex Molyneux said: “We’re pleased to partner with Contract Power on a clean, cost-effective power solution for Abra.

“Integrating solar with relatively clean natural gas instead of diesel achieves a marked reduction in Abra’s carbon footprint compared to alternatives considered in the tender process.

“Pleasingly, the design also offered the most cost-effective solution, in-line with our feasibility study estimates.”

Remote resources experience

A Western Australian-based company wholly owned by Pacific Energy Ltd, Contract Power specialises in the design, construction and operation of remote power stations for the mining and government sectors.

Contract Power’s recent projects include:

  • 56MW gas fired power station for Mineral Resources Limited’s (ASX:MIN) (OTCMKTS:MALRF) (FRA:F5J) Wodgina Lithium Project;
  • 18MW gas fired station for Capricorn Metals Ltd’s (ASX:CMM) (FRA:MGM) Karlawinda project;
  • 18MW gas and diesel power station at Wiluna Mining Corporation Ltd’s (ASX:WMX) (OTCMKTS:WMXCF) (FRA:NZ3) Wiluna Gold Project; and
  • The Esperance renewables hub which is under construction and will consist of a 22MW gas power station fully integrated with two 4.5MW wind turbines, 2MW of battery storage and 4MW of solar.

“World-class hybrid power station”

With the ability to incorporate the latest in diesel, gas, renewable and battery storage technologies, Contract Power seeks to optimise energy efficiency for its off-grid clients, whilst minimising carbon emissions.

Contract Power managing director Leon Hodges said: “We are very pleased to be working with Galena on this important project and look forward to rewarding their confidence by delivering a world-class hybrid power station.

“Contract Power’s combined LNG and renewables integration capability has allowed our design team to maximise solar penetration as high as the economics and technology allows, providing the Abra project with the highest reliability and lowest cost of power on an unsubsidised basis.”

The PPA remains subject to the condition of AMPL proceeding to final investment decision for the project.

Quick facts: Galena Mining Ltd

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Market: ASX
Market Cap: $162 m

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